According to a Honolulu Star Advertiser article, Hawaii occupies the seventh lowest position for auto insurance rates among all US states. So, getting the right Hawaii auto insurance can be an easy task, provided you know the state's minimum liability coverage requirements, its insurance laws and regulations, and the coverage options that companies provide
Hawaii Auto Insurance: Laws and Regulations
Here is a peek into Hawaii auto insurance laws and regulations, and the coverage options that companies provide:
* Hawaii's no-fault system: Hawaii uses the no-fault system of insurance, where the insurance company has to pay for the expenses arising from an accident, irrespective of who was at fault. This is in contrast to the tort system, where the driver who is at fault is responsible for paying the medical expenses and property damages resulting from an accident. The no-fault system helps reduce auto insurance fraud.
* Penalty for inadequate coverage: In Hawaii, different counties have separate departments for vehicle registration. However, those who do not have proper insurance coverage are penalized. While renewing vehicle registration, users have to show their inspection sticker. To obtain inspection, the proof of insurance is required; and not having this disqualifies one from having their vehicle inspected. This delays registration renewal, and not renewing before the expiry date attracts penalties.
* Liability coverage requirements: All registered vehicles in Hawaii must carry liability insurance that covers bodily injuries and property damage. While the minimum coverage for bodily injuries for a person in an accident is $20,000, the coverage amount for property damage is $20,000. The personal injury protection coverage for motorists helps pay for the medical or funeral expenses of drivers and passengers involved in the accident.
Besides the mandatory bodily injury liability and property damages coverage, insurance companies in Hawaii also offer:
* Comprehensive coverage that offers protection from unforeseen mishaps, such as the theft or destruction of your car, whether in fire, cyclone or earthquake. It offers refunds for car repair or part replacements up to the coverage limit.
* Medical coverage covers the medical expenses for the persons traveling in your car (other than the names mentioned in your liability policy) during the time of the accident.
* Underinsured and uninsured coverage protects you from financial losses in cases where an accident is caused by another person with no insurance coverage, or when someone hits your vehicle and flees.
Similarly, collision coverage pays for the repair and replacement costs of a car that is completely destroyed in an accident. You can also obtain rental car insurance while at Hawaii.
